MEDIA ADVISORY — News Release
Contact: John French, Republic Retooled (non-profit), email@example.com
Proposed Board of Sup’s Resolution Petitions Washington to END too-big-to-fail
Citizen support is being sought in the county — launching a statewide and soon-to-be national political-action campaign from the grassroots — for a mandate from Main Street in America to the White House demanding the end of TBTF and the implementation of other reform that Washington has failed to implement — a status quo of failed reform that has left the economy vulnerable to another financial crisis and recession, according to experts
What: Republic Retooled (a non-profit — see “Who,” below for info.) is seeking citizen support in all County Board of Sup’s. districts other than District 3 (Ryan Coonerty) for a proposed resolution (see that, below)
Who: Republic Retooled, a new Santa Cruz non-profit (see: About page, here: https://stopfinancialcrisis2-republicretooled.nationbuilder.com/)
How: Citizens are invited to go to the website (Instructions: Search for “Republic Retooled” in Google Groups; a link to the website is in the Group description) and read the Resolution; sign the Petition; sign up to take action; sign up for email updates; join the discussion (or just post comments/questions) in the Google Group; etc.
Santa Cruz, CA — Republic Retooled, a new Santa Cruz political-action non-profit, is seeking citizen support in County Board of Supervisors’ Districts (primarily, outside of Coonerty’s District 3) for a proposed resolution that was submitted to Sup. Ryan Coonerty’s office recently.
The resolution petitions the White House “to immediately initiate the implementation of the financial reform… that will END the threat of too-big-to-fail financial firms and END all of the other threats posed by Washington’s failure to implement the effective reform that is needed to END the status quo in our regulatory and law enforcement agencies that perpetuates ‘the criminogenic environment [in our financial markets] which produces the recurrent, intensifying epidemics of control fraud that drive our ever-worsening [financial] crises.’”
This quote in the resolution, by Professor William Black (economics and law, University of Missouri at Kansas City), is taken from an article authored by Black in which he warned, in 2013, that, “Dodd-Frank [the Dodd-Frank Wall Street Reform and Consumer Protection Act, 2010] doesn’t address any of the three central elements that create the criminogenic environment that… drive… [these] crises.”
Black is now a member of a year-old group of finance-industry experts, the Bank Whistleblowers United, who published a financial-reform proposal early last year. This proposal is being utilized by Republic Retooled as an example of the reform that Washington could implement that would address not only the issue of TBTF, but would also address Black’s “three central elements” that create this criminogenic environment in our financial markets. Black lists those central elements as: “the creation of the… ‘too-big-to-fail’ firms; modern executive compensation, which creates the perverse incentive structures and is the means of looting [accounting control fraud] that the CEOs use; [and] what we call the three D’s — deregulation (when [Washington] reduces, removes, or blocks rules or laws, or authorizes entities to engage in new, unregulated activities), de-supervision (the rules remain in place but they are not enforced, or are enforced [by regulatory agencies] more ineffectively) and de facto decriminalization (when enforcement of the criminal laws becomes uncommon in the relevant industries).”
Black and his fellow Bank Whistleblowers wrote last year, as they announced the publication of their proposal, that, “Epidemics of accounting control fraud drove our three modern crises: the Savings and Loan debacle, the Enron-era scandals, and the most recent crisis [2007-9].”
As an explanation for why the FBI failed to take effective action, after identifying the “epidemic” of fraud that was occurring in the housing market in 2004 (years before the crisis), Republic Retooled offers this quote by Black: “[During the Bush (George W.) administration] the banking regulatory agencies (1) had their budgets and staff’s shredded and (2) were led by anti-regulators who ended the entire criminal referral process [referrals submitted by the regulators to the FBI] (without any public notice or rationale) [and] the Obama administration refus[ed] to restore an effective criminal referral process [in] the banking regulatory agencies.”
Republic Retooled quotes the opinions of several experts in its resolution to drive home the point that “this failure, during the near decade that has passed since the bankruptcy of Lehman Brothers, by both the executive and legislative branches to implement the effective financial reform that we need to protect our nation’s financial system and our economy from the threats posed by TBTF firms and the threats posed by the status quo of regulators and law enforcement officers not having the tools and direction… they need to properly supervise financial firms and investigate and prosecute the white-collar crimes and criminals, respectively, that cause our nation’s ongoing financial crises… provides significant evidence that Wall Street’s undemocratic influence will likely continue, indefinitely, to preclude the implementation of the reform that our nation requires.”
Republic Retooled illustrates on their website the devotion to the task of reform of the Bank Whistleblowers United (BWU) with this quote: “We [BWU] cannot… fail to act now given the urgency of the problems caused by the collapse of personal accountability for Wall Street [bankers]. Our economy and our democracy are both imperiled by that collapse and require urgent redress. [We, the BWU members, are] dedicated to… helping to implement the urgent changes necessary to prevent or at least reduce the frequency and harm of future crises.”
Republic Retooled explains on their website that their plan for achieving the ultimate goal of their STOP Financial Crisis 2 campaign — the implementation in Washington of the reform that will achieve the objectives specified in their resolution (see: “Resolved” clause) — includes the building of a mandate from citizens on Main Street to their representatives in Washington that demands the immediate initiation of the implementation of this reform. Their plan is to start at the grassroots by passing their resolution in local jurisdictions (City Councils, etc.) across the state; building the requisite support for passing a similar resolution in the California Legislature. After achieving that milestone, the plan is to leverage this success in California and expand the campaign nationally, building the Main Street citizen mandate community by community and state by state.
The Republic Retooled founder, John French, a Santa Cruz resident, is confident that Americans on Main Street will not accept how this status quo of failed federal financial reform forces them to live every day under the dark cloud of the next financial crisis and will readily commit to supporting this reform mandate — once they are fully informed about these threats (another financial crisis and recession) to their family’s prosperity and well-being that are posed by Washington’s failed reform. French points to the non-partisan nature of the campaign and how preventing another financial crisis and recession have universal value for every working family in America as being the strong foundational elements upon which this campaign is built — all of which is the basis of his optimism about the campaign’s chances for success in achieving its ultimate goal (implementation of the reform in Washington that achieves the reform objectives specified in the mandate).
French emphatically states that it is now the responsibility of the American people to take on the responsibility of ensuring that Washington does not fail to implement effective reform the second time around.